Insurance is about transferring risk from one party to another. The amount of risk one is willing to take can be an individual preference, but it can also be dictated by a finance company or other interest in your business, such as a landlord.
As many of you know, the insurance business is in my blood. That being said, I’m adverse to risk if I can buy insurance to transfer the risk. If there is a policy or type of coverage out there and my family has exposure, I want to see what the cost is to cover the exposure. The tanning industry has unique needs and so the exposure is different than that of a typical business. Sometimes insurance agents will say they “specialize” in a class because they write several accounts in an industry. It is important when reviewing your insurance needs with a specialist that they really understand not only the industry needs but your own concerns. There isn’t one policy out there that can cover everything. In order to help you sleep better at night and meet your requirements as a business owner, you might need several different insurance policies.
Change, change and more change – of course, every industry has to change to evolve; but sometimes change leads to questions and confusion. The changes in the salon insurance marketplace have been interesting over the past couple of years. Besides going with a specialist in the industry, it is recommended that you know the longevity of the insurance company’s background in the tanning industry. Do you feel more comfortable with a carrier that has been insuring tanning salons for 20 years or just one year?
Besides knowing what a policy covers, do you know what it excludes? How do you feel about cancer exclusions, skin and eye infections or other exclusions as they relate to negligent acts that arise from use of the UV tanning equipment? Yes, I said the CANCER word. None of us in the industry like to discuss this topic, but you need to when reviewing your insurance portfolio. If your insurance excludes cancer coverage, you probably won’t be covered for any allegations of the disease. Many times, it’s just the accusation of cancer that is submitted as a claim, but there are still costs associated with legal representation to defend you. When a legal team is in the picture, you know there is a price tag; so why not transfer that expense to an insurance company that knows how to defend claims made in the tanning industry?
The number of insurance companies in the tanning industry is smaller, but you can still obtain a good policy at a reasonable premium. To help find the right fit, review industry magazines, attend tradeshows, or call friends in the industry. If your insurance agent uses a carrier that excludes coverage that is important to you, ask why they do. If they don’t have a good reason, then look to another agent or company that can better meet your needs. There are still choices out there – just do your homework. It might take a little extra time, but in the event of a claim, you’ll be happy that you transferred the risk to the insurance company. ■
